SANFORD EDWARD, the developer of one of the last undeveloped coastal properties in Southern California.

A SHORE THING: Sanford Edward, developer of The Strand at Headlands in Dana Point, said he had concerns about the softening residential market as he prepared to put 118 oceanfront lots on the market, "but I knew we had some pent-up demand."

SETTING SALE: Buyers snapped up 25 lots in 72 hours last month at The Strand at Headlands. The average price was $5.9 million. The remaining 93 lots will be sold in nine more phases over the next two years.

DANA POINT – When Tom and Marie Vegh moved to California 25 years ago, the first thing they did was hit the beach.

Strand Beach was much different back then, a slice of undeveloped Orange County with mobile homes that dotted the coastal bluff. Tom Vegh had just been transferred to the former El Toro Marine Corps Air Station – and never would have imagined he’d one day call this beach his home.

The Veghs were among those who bought 25 of the 118 lots last month at The Strand at Headlands development during the first phase of sales.

The lots – which commanded an average $5.9 million – were nabbed within 72 hours, allowing buyers to get in on one of the remaining oceanfront developments in Southern California, and the last in Orange County that sits directly on the beach. Total sales revenue was about $147.7 million.

“For us, it’s where we started. It’s incredible to come back to that very spot and be able to own a piece of it,” said Tom Vegh, 49, who recently sold a Christian music publishing company.

The remaining lots are scheduled to be sold in nine more phases through the next two years, with custom homes built in about five years.

Development plans have been in the works for decades – back when the Chandler family owned the property and newspaper publisher Otis Chandler kept it as a sanctuary.

“They tried for 20 years to get approvals; they couldn’t get it done,” said Headlands developer Sanford Edward. “They just finally decided they had enough.”

It was on a drive home from a golf trip that Bruce Chandler mentioned to Edward – a Newport Beach-based land developer at the time – that his family was selling their property.

Edward jumped on it, a pretty sweet deal back in 1998. It took eight more years before the lots would go up for sale. Worth the wait, since the real estate boom allowed prices to triple, he said.

More than 2,400 people signed up on an interest list. To sift out those who were serious, the Headlands group asked for a $10,000 refundable deposit for a tour, which 142 people signed up for.

If those prospective buyers wanted to stay in the game, they had to slap down a $100,000 refundable deposit – $200,000 if they wanted a beachfront lot. Forty-three people stayed in.

While many of the buyers at Headlands came from Orange County, others are from places such as Las Vegas, Chicago and as far away as Australia.

“The demand for oceanfront is there,” Edward said. “There’s only so many miles of coastline.”

The softening residential market had been a concern for Edward as the properties went on the market, “but I knew we had some pent-up demand.”

John McMonigle, the No. 1 residential broker in the nation for Coldwell Banker three years straight, said it was no surprise the lots sold as well as they did. He has several clients who purchased here, and even picked one up for himself as a vacation home.

“I think those values will continue to surge upward. It offers amenities you can’t find anywhere else,” he said, calling the area a “trophy market.”

“There’s tremendous demand and low inventory.”

While the number of oceanfront properties is not growing, there is still an increase in incomes and growing affluence in the area, he said.

Census figures show that Orange County is growing wealthier. From 2000 to 2005, the number of households earning $100,000 or more a year grew by nearly one-third, while all other segments decreased. For example, households earning $200,000 and more increased by 2.2 percent.

New developments along the coast are scarce. Marblehead Coastal in San Clemente will have 313 homes, a commercial center, parks, trails and a nature preserve on 248 acres. A development in Bolsa Chica will have 356 homes. Both developments sit on the inland side of Coast Highway.

Headlands was an opportunity for Renetta Caya to enjoy the beachfront lifestyle she had come to know a few beaches up at El Morro.

It’s where she gathered for weekend barbecues and enjoyed the sound of surf in the morning, and where she met her husband, whose family owned a home there for 50 years.

When the state shut El Morro down earlier this year, Caya and her family were in the market for a new beachfront vacation home.

The Caya family opted for Headlands because its design rules were not as stringent as other communities they looked at.

There are no restrictions on the architectural style of homes people can design. And it’s that sort of thinking that’s going to create a diverse, eclectic mix, Edward said.

However, Edward said, there are a few restrictions. Building materials must be “high quality,” such as real wood and authentic brick.

For Vegh, a major perk is the 68 acres of open space, with about 3 miles of trails open to the public.

“For us, we see it as a place for our grandkids to come one day,” he said.

There also will be a 90-room hotel and spa and a 9,000-square-foot beach club strictly for residents.

The Headlands development is part of a puzzle that could make Dana Point – regarded as one of the last sleepy coastal towns – a completely different place in the next decade.

Plans to upgrade the downtown Town Center are under way, along with a $120 million harbor revitalization plan.

“Dana Point is a great location. It has a harbor and the best beaches,” Edward said. “People change and grow – I think towns do the same.”

Project timeline

1950s through 1980s Property owned by the Chandler family. The Strand Mobile Home Park occupied the land.

1988 The mobile home park was closed to make way for development.

1994 Dana Point City Council approves plan for 370 homes and 400-room hotel. Residents vote to void the decision. Property owners sue. Courts uphold vote but say the city must decide on a plan acceptable to both sides.

Laylan Connelly started as a journalist in 2002 after earning a degree in journalism from the University of Southern California. Through the years, she has covered several cities for The Orange County Register, starting as a beat reporter in Irvine before focusing on coastal cities such as Newport Beach, Dana Point and Laguna Beach. In 2007, she was selected for a prestigious Knight New Media fellowship focusing on digital media at UC Berkeley, where she learned skills to adapt to the ever-changing online landscape. Using a web-based approach, she turned her love for the ocean into a full-time gig as the paper’s beaches reporter. The unique beat allows her to delve into coastal culture by covering everything from the countless events dotting the 42 miles of coastline, to the business climate of the surf industry, to the fascinating wildlife that shows up on the shores. Most importantly, she takes pride in telling stories of the people who make the beaches so special, whether they are surfers using the ocean to heal, or the founders of major surf brands who helped spawn an entire culture, or people who tirelessly fight to keep the coast pristine and open for all to enjoy. She’s a world traveler who loves to explore the slopes during winter months or exotic surf spots around the globe. When she’s not working, or maybe while she's researching a story, you can find her longboarding at her favorite surf spots at San Onofre or Doheny.

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